In a current assessment of the market’s present situations, JPMorgan strategist Eduardo Lecubarri recaps his view that 2021 will see modest positive factors throughout shares typically – however outperformance among the many small/mid-cap sector. Lecubarri believes that traders can discover alternatives for giant upside amongst shares in that class. Driving the final shares positive factors, Lecubarri factors to current manufacturing PMI prints, that are at 15-year excessive ranges, and the falling unemployment numbers – each information factors point out a agency basis for financial restoration. With client confidence additionally rising, and comparatively excessive financial savings, he sees a tailwind for the small/mid-cap because the yr unfolds. A common development of rising small-cap shares ought to naturally impel analysts and traders to take a look at the ‘pennies,’ shares which can be priced under $5 per share. While not a positive indicator, low share value often goes together with low market cap – nevertheless it additionally comes with the stable upside potential that Lecubarri mentions. However, earlier than leaping proper into an funding in a penny inventory, Wall Street execs advise trying on the greater image and contemplating different components past simply the value tag. For some names that fall into this class, you actually do get what you pay for, providing little in the way in which of long-term progress prospects due to weak fundamentals, current headwinds and even massive excellent share counts. Taking the chance into consideration, we used TipRanks’ database to search out two compelling penny shares, as decided by Wall Street execs. Each has earned a “Strong Buy” consensus ranking from the analyst group and brings large progress prospects to the desk. We’re speaking about over 100% upside potential right here. Biolase Technology (BIOL) We will begin with Biolase Technology, a pacesetter designer, producer, and innovator in dental laser know-how. Lasers convey a number of advantages to dentists and their sufferers, together with fewer aerosols and a gentler contact throughout procedures, and extra snug therapeutic afterwards. Biolase merchandise are utilized in periodontal, endodontic, hygienic, and implant procedures; the corporate markets on-line on to dental practices. Biolase put a constructive spin on its current 4Q20 earnings report. Even although the highest line revenues of $8.52 million had been down 16% year-over-year, the sequential quarterly achieve was spectacular, at 31%. The firm benefited as dental clinics bought again to work within the financial restoration of 2H20. Biolase reported two constructive tendencies in gross sales in This fall, with 78% of gross sales coming from new prospects and 40% going to dental specialists. Even higher, the corporate supplied Q1 income steering for $7.5 – 8.0 million, up 60–70% yoy, and above consensus of $7.0 million. Currently going for $0.76 apiece, Biolase shares may see main positive factors, in accordance with some analysts. Among the bulls is Maxim analyst Anthony Vendetti who famous that the corporate’s positives in This fall should not simply spin. “While the international market continues to lag the US in COVID recovery, BIOL delivered its second consecutive quarter of significant sequential revenue growth, driven by US sales to new customers, dental specialists, and Dental Service Organizations (DSOs). We are encouraged that dental specialists comprised 40% of the company’s US laser sales in 4Q20, and expect the company’s recent launch of both the Endo and Perio Academies to contribute to increased adoption by the ~5K endodontists and ~5K periodontists in the US. Moreover, BIOL has placed an increased emphasis on converting small DSOs (that can adopt BIOL’s technology more quickly), which we expect to bolster short-term revenue as the company makes progress converting larger DSOs, such as Heartland Dental (private),” the 5-star analyst opined. Vendetti summed up, “Based on the unique value proposition of BIOL’s products, its continued progress in penetrating DSOs, and its increasing traction with dental specialists, we reiterate our Buy rating.” Along with that Buy rating, the analyst sets a $2 price target that indicates 165% share growth ahead in 2021. (To watch Vendetti’s track record, click here) It appears the rest of the Street sees plenty of upside, too. Based on Buys only – 4, in fact – the analyst community rates BIOL a Strong Buy. The average price target hits $1.94, and implies potential upside of ~157% over the coming months. (See BIOL stock analysis on TipRanks) Fortress Biotech (FBIO) Fortress Bio is a pharmacological research firm with a wide-ranging pipeline of 28 drug candidates, in varying stages of development from preclinical to Phase 3 trials. In addition to the pipeline, Fortress has six approved drugs on the market for a variety of dermatological conditions including acne, skin fungal infections, and burns and other surface wounds. These medications are marketing by Journey Medical, Fortress’s partner company, and in 2020 netted revenues of $44.5 million. This compared well – up 28% – to the $34.9 million netted in 2019. Fortress ended 2020 with a sound cash position, holding $235 million cash and cash equivalents. This was up $15 million from Q3, and up 53% year-over-year. The company noted that these positive results came even as the COVID pandemic impacted both supply and sales. Looking ahead, Fortress expects to add two new approved prescription products to its lineup in 2021. In another program update, Fortress is partnering with Cyprium Therapeutics and Sentynl Therapeutics on CUTX-101. Both companies have signed onto a Development and Asset Purchase agreement for the drug candidate, a treatment for Menkes disease currently in Phase 3 clinical trials. The company reported positive clinical efficacy results last August, including medial survival in the early treatment cohort of 14.8 years, compared to 1.3 years for the untreated historical control cohort. In 2H21, Fortress will begin rolling submission of the NDA for CUTX-101. Covering this stock for B. Riley, 5-star analyst Mayank Mamtani notes the company’s fundamental soundness. “FBIO’s differentiated enterprise mannequin, constituting of a diversified portfolio of marketed merchandise and clinical-stage candidates, stays resilient amid challenges posed by C-19 pandemic, thereby organising favorably upfront of quite a few regulatory, scientific information and steadiness sheet inflection factors anticipated over the following few quarters serving as alternatives to re-rate the inventory,” Mamtani wrote. To this finish, Mamtani charges FBIO a Buy, and his $10 value goal suggests it has room for ~100% upside within the subsequent 12 months. (To watch Mamtani’s monitor document, click on right here) Overall, Fortress Bio has 4 opinions on document, and all are to Buy, giving the inventory a Strong Buy consensus ranking. FBIO shares are priced at $4.48, and their $13 common value goal implies a one-year upside of 190%. (See FBIO inventory evaluation on TipRanks) To discover good concepts for penny shares buying and selling at engaging valuations, go to TipRanks’ Best Stocks to Buy, a newly launched device that unites all of TipRanks’ fairness insights. Disclaimer: The opinions expressed on this article are solely these of the featured analysts. The content material is meant for use for informational functions solely. It is essential to do your individual evaluation earlier than making any funding.